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August 2015
ty People al Responsibili Corporate Soci cubator BusinessinIn g
ISSUE
17
Career Coach
s SeriviesBhusari, Director, SuccewsW ith Ra Intervie Duplays
Telecommunication partner
Finance partner
the GEnder divide Customer Service Challenges
UAE Consumers Beat Global Average In Technology Usage
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Editor’s Foreword
I
t is August, the sun is shining and the heat is on, both in and out of the office. For all those who are still in the city, we have been hard at work to bring you the latest information that you need to be aware of to drive your business forward.
A recent survey by Gartner illustrated that the Gender Gap is still at large when it comes to CIOs in the boardroom. This is greater still if they report into a CEO. By this I don’t mean in the number of male CEOs in comparison to female – this is old news – but as to how they think in terms of their budgets and how they see themselves getting the money they need, as well as what the key areas for growth are. If you turn to page 14, we bring you the breakdown on what CEOs and CIOs globally are saying their budgets will focus on next year. Keeping a gender focus in mind, we bring you the Success Series but with a difference. Cartier, the French jeweller, has recently announced the finalists of their Women’s Initiative Awards, 2015. With three regional finalists making their way to Paris, Business Insight takes a look at their business models and how they are paving the way for future entrepreneurs. Going off in a completely different direction, did you know that the UAE is leading the way in sustainability? It was found that we “Rank 8th Among the Top 10 Countries for LEED Green Building” (page 62). This is great news for the sustainability movement as it illustrates just how important going green is for businesses and the Government who are driving this forward.
Publisher & CEO Liam Williams liam@flipflopmedia.ae Managing Director Harry Norman harry@flipflopmedia.ae +971 4 369 9062 Business Development Executive Paul Davis info@flipflopmedia.ae +971 04 369 9061 Editorial Editor Tanya Selley tanya@flipflopmedia.ae +971 4 369 9063 Staff Writer Rachel Stracey info@flipflopmedia.ae Design Head of Design Mhar Delaben design@flipflopmedia.ae Operation Steve Miller Operations@flipflopmedia.ae circulation & Production Circulation and Distribution Manager Antonio de Marco circulationdm@flipflopmedia.ae
Enjoy!
Database and Circulation Manager Aaliya Khan databaseandcm@flipflopmedia.ae Production Manager Juan Vasquez productionmanager@flipflopmedia.ae
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Talk to me at tanya@flipflopmedia.ae and let me know what information you need to take your business forward — and I will try to help you in the next issue.
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August 2015 Cover the gender divide Customer Service Challenges UAE Consumers Beat Global Average In Technology Usage
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August 2015 | 3
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50 14 August 2015
20
Contents Foresight Page 14 The Gender Divide Page 20 CFO’s Critical for the Survival of the Oil and Gas Industry Page 24 If Only There Was More Time…
Success Series
32 40
Page 26 Interview: Ravi Bhushari, Director & Co-Founder, Duplays Page 28 Introducing the Finalists for The Cartier Women’s Initiative Award, MENA 2015
Money Page 32 Equity Vs Debt Page 35 Global Bond Experts to Discuss the Future of the Rapidly Emerging Green Bond and Sukuk Sector
People Page 36
Corporate Social Responsibility
Legal
46
Page 40 Dubai Residence Visas Page 44 Transfer Pricing – Considerations on Conducting Business In Africa
DMCC Section Page 46
Technology Page 54 UAE Consumers Beat Global Average in Technology Usage Page 56 Popular Fitness Tracking Devices an Easy Target for Hackers Page 57 The Network Must Protect the Internet of Things
Hospitality Page 58 Review: Dubai’s Lagoon of Luxury Spas, Fine Living and Dining
Property Page 60 Sharjah Steps-Up awareness campaign as Rental Rates Fall Page 62 The United Arab Emirates Ranks 8th Among Top 10 Countries for LEED Green Building
Business Incubator Page 64 Top Priorities for Consumer Executives in the UAE Page 65 Customer Services Challenges Page 66 Career Coaching Page 60 Drastic Property Market Correction Unlikely says London Business School Page 70 Sense of Smell
One JLT Q&A
Marketing & Advertising Page 50
What’s the Story, Marketing Glory?
70 10 | August 2015
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expert panel
EXPERT PANEL Jonathan Hall Founder and Managing Director Mulverhill Associates
Caroline Jones Director Infopod
John Brash Founder & Chief Executive Brash Brands
Yogesh Mehta Managing Director Petrochem
Hind Abdulrazak Creative Director Audax Investment
Sara Abdulrazak Managing Director Audax Investment
Dr. Tommy Weir Founder Emerging Markets Leadership Center
Jeffrey Rhodes Founder & Managing Consultant Rhodes Precious Metals Consultancy DMCC
Louis Lebbos/ Founding Partner Astro Labs
12 | August 2015
Muhammed Mekki Founding Partner Astro Labs
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foresight
Indra Nooyi, Chairman and CEO, PepsiCo
Marissa Mayer CEO, Yahoo
The Gender Divide Female CIOs Foresee Bigger Budget Increases Than Their Male Counterparts in 2015. emale CIOs expect to increase their budgets by 2.4 percent in 2015, whereas male CIOs report average increases of just 0.8 percent, according to a survey by Gartner, Inc. The worldwide survey included responses from 2,810 CIOs, representing more than US$397 billion in CIO IT budgets in 84 countries. Among
F
The survey findings underline the fact that a significant majority of CIOs of both genders believe that the digital world is creating new and additional risks in their environment
14 | August 2015
the respondents to the 2015 Gartner “CIO Agenda 2015: A Gender Perspective,” 13.6 percent were women. “For a second year in a row, the women in our survey are expecting greater budget increases than the men,” said Tina Nunno, Vice President and Gartner Fellow. “While it’s not entirely clear why this difference exists, further survey data indicates that female CIOs are more concerned about underinvestment in risk initiatives than male CIOs. The risk data, combined with budget numbers, may indicate that female CIOs are more focused on the resource side of the digital equation than their male peers and are therefore requesting and accumulating more IT budget money.” The survey findings underline the fact that a significant majority of CIOs of both genders believe that the digital world is creating new and additional risks in their environment. However, female CIOs are significantly more likely to express concern that investments in risk management and risk management practices are not keeping
up with new and higher levels of risk in a more digital world — 76 percent of female CIOs as opposed to 67 percent of males. Female CIOs were also slightly more likely to agree that the digital world is creating new and different types of risk, and that agility will be important in dealing with these risks. This could be an indication that women are more concerned about digital risks, and therefore female CIOs are somewhat more risk-aware than their male counterparts. According to the data, reporting structure impacts the budgets of male CIOs more significantly and adversely than female CIOs. When male CIOs report to the CEO, they foresee a significant budget increase (2.8 percent), but their budgets remain essentially flat in all other reporting relationships with the exception of the COO reporting where a slight negative budget trend appears. Female CIOs expect to receive budget increases regardless of reporting line, although this increases depending as to whom they report to, most significantly when reporting to the CFO (3.2 percent) and in the
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foresight
“We all need to be more impatient with the status quo. I believe we all need to shift the emphasis in our thinking – From why we can’t compete to how we can compete. In other words we all need to be a little more impatient” ursula burns, ceo, xerox corporation
“As I’ve progressed in my career, I’ve come to appreciate — and really value — the other attributes that define a company’s success beyond the P&L: great leadership, long-term financial strength, ethical business practices, evolving business strategies, sound governance, powerful brands, values-based decision-making” - Ursula Burns, Chairman and CEO, Xerox
“other” category at 4.2 percent. According to the survey, the most common titles in the “other” category included CIO/enterprise CIO (denoting that the survey respondent was a business unit CIO reporting to the enterprise CIO), director/executive director, vice president, general manager and chief administrative officer (CAO) in that order of frequency. Several of these titles are CEO equivalents, and therefore the budget increase is consistent with the CEO numbers.
16 | August 2015
The top five technology priorities identified by the survey is the same for male and female CIOs, with minor variations in order. This reflects a shared focus on analytics, infrastructure and data center, cloud, enterprise resource planning (ERP) and mobile technologies. “For good or bad, women and men view the top priorities virtually identically,” said Nunno. “Variations in top priorities by gender in past CIO surveys could often be
attributed to significant differences in the industries where male and female CIOs worked. However, more recent data shows little difference in the gender dispersion of CIOs across industries, which may account for the consistency in prioritisation.” When questioned more closely about technology leadership, the survey data indicates that female CIOs are more in agreement that
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foresight
“Variations in top priorities by gender in past CIO surveys could often be attributed to significant differences in the industries where male and female CIOs worked. However, more recent data shows little difference in the gender dispersion of CIOs across industries, which may account for the consistency in prioritisation� Tina nunno, VP & Gartner fellow
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analytics are increasing in importance for their organisations. 32 percent of women CIOs agree that there is a shift from backward-looking reporting to forward-looking analytics compared to 22 percent for male CIOs. This difference becomes more extreme when the CIO reports to the CEO. During this reporting structure it was found that 42 percent and 23 percent for female and male CIOs respectively felt forward-looking analytics were increasing in importance. It is a common belief that predictive data is foundational
August 2015 | 17
foresight
to strategic outlooks and discussions, and therefore a high priority for many CEOs. Ursula Burns, Chairman and CEO of Xerox Corporation sums up her outlook, “We all need to be more impatient with the status quo. I believe we all need to shift the emphasis in our thinking – From why we can’t compete to how we can compete. In other words we all need to be a little more impatient.” To a larger extent than their counterparts, female CIOs also agree strongly that new types of information such as social information and multimedia are increasing in importance (19 percent vs. 13 percent), and again this difference is enhanced when reporting to the CEO (23 percent vs. 14 percent). As Meg Whitman, CEO, HewlettPackard says, “Communications is at the heart of e-commerce and community.” She goes on to explain with an example of her previous company eBay, where she was also CEO, “Look at growth, look at how much time people spend on the Net and look at the variety of things that they are doing. It’s all really good, so I am encouraged by the fundamentals that underlie usage growth on the Net.” It is the excitement of social media though that peaks her interest, much like other CEOs, “You look at the tremendous success of Facebook and the potential for commerce going on in these social networking sites. eBay is a community anchored in commerce. It is a commerce site that built a community around it.” Gartner suggest that such variations in gender responses may relate back to differences in how women and men view enterprise risk and the role of information in managing those risks. Reporting structure had little impact on the top priorities by gender. One exception was digitalisation/ digital marketing, an important priority for many revenue-focused CEOs. For those female CIOs that reported into CEOs this priority moved up to third priority, but remained at sixth priority for male CIOs. When female CIOs reported to CFOs, who tend to be more internally cost-focused, the priority dropped to seventh, where it remained the same for male CIOs. This is one of several
18 | August 2015
“Look at growth, look at how much time people spend on the Net and look at the variety of things that they are doing. It’s all really good, so I am encouraged by the fundamentals that underlie usage growth on the Net” Meg whitman, ceo, hewlEtt-packard
Meg Whitman, Chairman, President and CEO of Hewlett Packard
instances where the survey data demonstrated that female CIOs are more adaptable to their reporting structure than their male counterparts. The survey also found female CIOs were slightly more likely to say that they needed to change their leadership style in the
next three years than were male CIOs (79 percent vs. 74 percent). However, the remaining data shows little notable statistical variation, indicating that male and female CIOs spend their leadership time similarly and see the need for leadership change almost identically. l
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foresight
CFOs Critical For The Survival Of The Oil And Gas Industry With oil prices slowly recovering from the dramatic fall last summer which forced global organisations to put multi-million dollar projects on ice, ACCA (the Association of Chartered Certified Accountants) has detailed the key areas in which chief financial officers (CFOs) working in the sector can galvanise the finance function in the fight to future-proof their business in an ever more volatile market
peaking on the report, titled “Oil and Gas – Priorities and Challenges for the CFO Enterprise”, Jamie Lyon, the author and Head of Corporate Sector with ACCA (the Association of Chartered Certified Accountants - the global body for professional accountants) says, “We have all seen the impact of volatility in the market hitting the cost base and impacting capital expenditures over the last year or so. The big question now is how low and how long the oil price will remain at present levels.” The report also highlights how volatility is bringing pressure on forecasting and decision support capabilities, and more scrutiny from investors on the performance of businesses in the sector. “Corporate reporting challenges are also a key test for CFOs, particularly in relation to asset impairment and stranded assets” Lyon says.
S
Forecasting One of the biggest issues facing CFOs in the sector is predicting the future business
20 | August 2015
landscape. Lyon adds, “Effective forecasting and planning is vital right now. Preparation for the potential risks of the future and most importantly, how to overcome them, needs constant review so that plans do not become irrelevant which can happen all too quickly in a fast-moving and volatile sector like oil and gas.” Spending The report also highlights the challenges facing CFOs in terms of the cost base. “Resource allocation needs to be prioritised, and ruthlessly so. What really needs the funding? All spending will be analysed so CFOs need to tread a fine line between cutting cost but also protecting essential investment for the future. It’s a really tricky balance to get right.” Reporting Challenges With ongoing pricing challenges impacting the sector, the investor community remains cautious, and is becoming more challenging. For enterprises that are heavily
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foresight
“We have all seen the impact of volatility in the market hitting the cost base and impacting capital expenditures over the last year or so. The big question now is how low and how long the oil price will remain at present levels” Jamie Lyon, Head of Corporate Sector, ACCA
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invested in carbon, the issue of “stranded assets” and potential impairments is also dominating the agenda, “I think we can expect to see a reduction in the value of assets on the balance sheet, that’s just a reality of the market at the moment,” Lyon explains. Longer Term Outlook From the CFO’s perspective, the report also points to the longer-term demands. “Obviously investment in renewables is a key issue. Fossil fuels by their very nature are a finite resource, and one that global warming targets may leave out of reach, so investment in alternative energy sources must be increasingly on the priority list.” Lyon adds, “Another equally important issue for CFOs longer term is the talent
pipeline. Securing the right balance of operational and strategic skills in the finance function is a huge challenge across the industry, and ensuring its endurance in the longer term must be a key consideration. The big question is where the next generation of finance talent across the industry will come from.” “CFOs, and the approach they use to transform their businesses to make them fit for the future, are a vital part of ensuring the oil and gas industry runs ‘business as usual’ as it works through turbulent times and continues to transform in an everchanging world. We believe the finance organisation is going to be at the forefront of driving the transformation needed in the sector.”l
August 2015 | 21
foresight
If only there was more time… SMEs (small and medium-sized enterprises) account for 60 to 70 percent of jobs in most OECD countries – OECD
All of us have the same amount of time; the challenge is using this resource effectively • • • •
Avoid crises (no fire fighting) Gain a feeling of accomplishment Do the things that benefit you and your business Enjoy your life. Do only things that matter
Is Your Time Badly Managed? • Are you often late for deadlines and/or meetings? • Do you find yourself constantly rushing from one appointment to another? • Do you know what your priorities are? • Do you find yourself doing everything becuase it is quicker for you to do? • Do you forget important tasks? If you answer yes to two or more of these questions, you could manage your time more effectively.
Small Business Series - Karen M. Williams
20 Major Time Wasters External • Telephone interruptions • Meetings • Visitors • Socialising • Lack of information • Excessive paperwork • Communication breakdown • Lack of policies and procedures • Lack of competent personnel • Red tape Internal • Procrastination • Failure to delegate • Unclear objectives • Failure to set priorities • Crisis management • Failure to plan • Poor scheduling • Lack of self-discipline • Attempting to do too much at once • Lack of relevant skills Source: Karen M Williams
24 | August 2015
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foresight
This rules states that 80 percent of all that happens at work is really the result of 20 percent effort Vilfredo Pareto, Economist
Remember the
What to do
rule
Principles of Scheduling • Block time-Reserve a block of time that cannot be interrupted and use this time to accomplish tasks that need your attention • Force yourself to stay with an activity until it is completed. • Identify and use prime time, both internal and external. Don’t schedule heavy-thinking projects from 8 to 10 a.m. if you are an afternoon person • Do not schedule all of your time. This unscheduled time will help in case of emergencies • Bring big projects into manageable bites, by setting realistic goals for the day • People tend to schedule the urgent but not the important. Include time for planning, preparation, thinking, socialising, recreation and travel
80/20
Create a daily “to-do” list
Source: Karen M Williams
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August 2015 | 25
success
Success series INTERVIEW:
RAVI BHUSARI
Director and Co-Founder of organised social sports leagues, tournaments, events and classes company Duplay hey say that the couple that ‘plays together stays together’, but what do we make of business people that play? Aside from the obvious amounts of fun to be had on the field, can ‘sports’ and ‘business’ go hand in hand? Young entrepreneur, Ravi Bhusari, Director and CoFounder of organised social sports leagues, tournaments, events and classes company Duplays, Ravi has successfully created a marriage between ‘sport and business’. Only an innovator could connect those dots, so let’s pass the baton to Ravi to explain how he created a business by doing what he loves… Founded in 2007, Duplays Membership has grown from 380 registrations in 2008 to 80,000 as we speak, with new members joining every week, playing over 15 sports.
T
What were you doing before you set up Duplays? I had an engineering background, so I was always logically minded and naturally thought about problem solving and how to make things better. When I was quite new in Dubai, I gradually got together with other guys who were also looking to play team sports. It wasn’t a big leap in thought-process when I realised that the
26 | August 2015
social scene in Dubai predominantly revolved around eating and drinking. The concept of meeting up socially to play sports developed into a natural business idea to arrange this as an organised social activity that didn’t involve eating and drinking, but still involved having a lot of fun, laughter and interaction with peers. What were your first steps to launch the business? I worked on a very detailed business plan after working my day job, even visualising the specific sponsors who I was hoping would eventually support the venture. We started small and then got an investor involved, who gave the business a huge boost, both financially and in mentoring terms. Prior to the investment into the Duplays, what early mistakes did you make that taught you good business lessons to take forward? Our early mistake was to focus more on the external execution of the business, the logistics of setting up the sports activities etc. than the internal running of the business and its infrastructure. We were so keen on delivering a good experience to our clients that our housekeeping was
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success
You have to generate cash flow for the business and always ensure there is a demand for your services. Lastly, surround yourself with great people that share your longterm vision
A business based on sport brings people together, it doesn’t matter what religious background, nationality or gender you are, sport brings everyone together on the same team something that we almost regarded as a second priority. Big mistake! Early mistake! Never to be repeated! What was your strategy for the use of Social Media, how did you start to incorporate it? Being in the business of playing sports is like no other business. There is no bad spin off to playing sports, it doesn’t harm other people or the environment and there is always something to celebrate. It is this celebration aspect that has attracted a great social network following. Our clients want to talk about the great games they played, the goals, the victories etc., and this in turn encourages interest from their friends. What are your expansion plans for the future? We are expanding out into the region and beyond, which is very exciting. A business based on sport brings people together, it doesn’t matter what religious background, nationality or gender you are, sport brings everyone together on the same
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team. This means we can export the business model internationally. What lessons can other businesses learn from your impressive rate of growth? You must have a passion for what you do and not just be motivated by money. Expect to
make mistakes and experience disappointment, but always make sure you bounce back, without taking it hard or personally. Manage your cash! You have to generate cash flow for the business and always ensure there is a demand for your services. Lastly, surround yourself with great people that share your long-term vision. l
August 2015 | 27
success
130,000
“We have created a book catalogue of 130,000 Arabic book titles.”
Introducing the Finalists for the cartier womens initiative award, mena 2015
Eman HYLOOZ Abjjad - Amman, JORDAN
Being an avid reader herself, Eman Hylooz, 31, deplored the absence of an online database of Arabic books. She has a background in computer science and had been working in software development prior to launching the first version of Abjjad in 2012 man was introduced to Arabic literature by her brother during her childhood years in Jordan. At school, she had mainly been taught Englishlanguage literature. However while searching for Arabic literature, she discovered there was no online book catalogue for this genre nor any online reading lists and book reviews. “My brother told me “this is really good, this is really beautiful” and overnight I was reading a lot of books in Arabic. I loved it but I was surprised. Why did I need my brother to tell me aboutit? I couldn’t find anything online.” Eman explains the absence of such a platform is due to the lack of digital marketing for Arabic books. Readers are often Internet users whereas most publishing houses are offline. “There is a huge gap between the reader, the books and the publisher. So we wanted to create this one platform that combines all the readers, the publishers, the authors and the books in one place.”
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Socialising The Reading Experience Abjjad – which is the first four letters of the original Arabic alphabet – is an Arabic literature catalogue available via the Internet and a mobile application. The platform allows users
to share their favourite publications through reviews and ratings, writers can meet their fan base and publishers have the opportunity to boost their digital marketing. For the last 2 years, Abjjad has created a community of books lovers now reaching 95,000 registered members. In the future, the company hopes to monetise its service through e-book sales. In this way, Abjjad wants to help publishers in the fight against piracy. Crowdfunding During her previous career in software marketing, Eman applied to Oasis 500, one of the main business incubators in the MENA region. “I took a course on how to move my idea from only an idea to a real mature business model. Being in an incubator was really a big help because they invested in the idea before even seeing anything. They gave us seed investment.” Eman then decided to launch a crowdfunding campaign to enable her to hire staff. “It was something really new in the Middle East and there was only one success story in the whole region. So I took the risk. I had only 80 days to close my round and within this time I was overfunded by 137 percent.” The company now has 3 full time employees and hires more than 15 freelancers all over the world.
“Aside from being the founder of Abjjad, I used it heavily when I started it to get to know the community, to get to meet the readers. As a side effect, my taste in reading became much more mature. The way that I read, the way that I really understand and reflect this reading on my life has been different”
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success
4.5%
For the past 20 years the global skin care market has grown at an average of 4.5% every year
Mouna ABBASSY Izil Beauty - Dubai, UAE Originally from Morocco, Mouna Abbassy moved to Dubai 10 years ago to start a career as a marketing professional for multinational cosmetic brands. Rediscovering the age-old Moroccan beauty rituals, she decided in 2013 to launch her own brand Izil Beauty – meaning “pure” in Moroccan Berber umerous brands and cosmetic products that claim to rejuvenate our skin or eliminate skin conditions are actually made of chemicals. Understanding the list of ingredients disclosed on a product label can often prove difficult. “People feel like they have to have a chemistry diploma to understand what they are putting on their skin”, says Mouna. A growing number of confused customers want to make sure they buy natural or organic cosmetics. “For the past 20 years, the market of natural beauty products has grown double digit with an average of 11% every year. Women are shifting from the sophisticated skin care products to a natural and more organic skin care market.”
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A Natural Beauty Brand Izil Beauty is a beauty brand which develops cosmetics containing natural ingredients with no synthetic colours. The creation process was inspired by Moroccan beauty rituals such as the use of Argan oil and Ghassoul clay. Mouna chose to manufacture her cosmetics in Morocco
in order to increase the employment prospects among the Berber community. In this country, 15 women are currently working for Izil Beauty. “I am Berber myself ”, says Mouna. “These Berber women are the labour behind the extraction of Argan oil.” All ingredients are imported from Morocco and some are certified by Ecocert, a French certification body for organic agricultural products. Izil Beauty sells its products in 4 kiosks located in the United Arab Emirates and hopes to launch an e-commerce platform. Making Beauty Standards Evolve While creating Izil Beauty, Mouna studied cosmetics in London in order to improve the formulation of her products. She hopes to create a shift in mindsets by promoting a different image of beauty. “We want women and girls to feel confident about themselves, to look at beauty from a different perspective. Beauty is not necessarily the women we see in magazines. Beauty comes from within. We want to promote that kind of pure beauty which will help women get confidence and help them achieve their daily challenges.”
“I grew up with women preparing their own beauty recipes at home using Moroccan natural ingredients such as Argan oil and Ghassoul clay”
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“We currently have 60 venues that are using our software to date. They use it because it’s powerful, it’s useful and it comes in handy for their everyday management”
Sarah HAWILO SerVme - Beirut, LEBANON With a bachelor and a master’s degree in business, Sarah Hawilo, 30, had been working as a research consultant in a multinational firm for 5 years when she decided to move into the technology sector. She co-founded serVme, a mobile application and analytics software, to help restaurateurs adequatelymeet their clients’ expectations riginally, Sarah was seeking to create a reservation application that would allow users to make instant bookings. While conducting research, Sarah discovered that restaurant owners most importantly needed to better understand their diners’ needs. “After speaking to many bars, clubs and restaurants to understand if this would be really useful to them, we actually came up with a very nice surprise. Restaurants are actually having a lot of trouble understanding who their customers are.” Restaurants were looking for a tool to capture information about their clients.
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Meeting Clients’ Expectations SerVme built an interactive mobile app in which users can reserve a table at venues and are provided with recommendations based on their preferences. In addition, restaurant managers have the ability to collect and analyse
the data in order to meet their customers’ needs. “From the restaurant perspective, we will be able to help them make better decisions from experience and not intuition, provide better service for the diners and enhance their operations. Customers always want to feel treated like VIPs and know that the restaurant knows what their preferences, allergies, likes and dislikes are.” Expanding To Dubai Sarah made it possible to launch serVme by applying for a government programme for low interest debt financing. “We were able to begin operations producing our software. We’ve also received seed funding and are currently growing our start-up.” The company has 9 full and part-time employees – mainly developers and sales and marketing people. serVme operates in Lebanon and is starting to work with restaurants in Dubai.
“The main challenge of the food and beverage industry is how to use technology in order to provide better service, increase capacity, increase revenues and lower marketing budget” “Restaurants need to move into a different level of inventory management where everything is automated, everything is coordinated”
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MONEY
Equity Vs Debt One of the biggest challenges for small and medium sized enterprises (SMEs) is the ability to get the right type of finance to reach their true potential. Although SMEs are estimated to be more than 95 percent of businesses across the world and they account for approximately 60 percent of private sector employment, they are still encountering challenges in obtaining finance at reasonable terms he International Finance Corporation (IFC) estimates that SMEs face a US$2 trillion funding gap around the world (up to US$260 billion in MENA). High fees and interest rates make traditional financing options prohibitive for most small businesses. Many conventional lenders are either unwilling or unable to provide finance to SMEs, leading to a widening funding gap. There is no question that there is a critical need for alternative sources of finance to serve this particularly underserved sector of the economy. Crowdfunding may be a new concept in the UAE, but it has proved itself an extremely successful and trusted model in Europe and the US over the past 10 years. The advancement of technology means that this model of collaborative funding is challenging the way projects and businesses are funded. Crowdfunding is a simple, innovative way of raising finance or investment by asking a large number of people for small amounts of money. The concept is gaining so much popularity that it is estimated that there are now around 1,250 crowdfunding platforms globally that created over 270,000 jobs worldwide. The crowdfunding market average year on year growth rate has exceeded 200 percent in 2014 across America, Europe and Asia and is estimated to reach US$34 billion in size in 2015. Two types of crowdfunding in particular have been rapidly gaining popularity globally in the past years, peer-to-peer (P2P) finance and equity crowdfunding. This is due to their attractive cost, accessibility, and flexibility. Although they are both built on the principals of crowdfunding, it is important to understand that there are fundamental differences. To determine which is the most suitable for a business, one must be clear about what stage the business
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P2P is also based on crowdfunding principles as it uses the Internet as a platform to reach hundreds or even thousands of potential investors who offer small amounts of money to finance businesses in return for monthly installments of capital plus profit
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MONEY
Two types of crowdfunding in particular have been rapidly gaining popularity globally in the past years, peer-to-peer (P2P) finance and equity crowdfunding. This is due to their attractive cost, accessibility, and flexibility. Although they are both built on the principals of crowdfunding, it is important to understand that there are fundamental differences
is at, how much funding is needed, what the capital will be used for and how quickly the funding is needed. Equity Crowdfunding This involves selling ownership parts of your start up business to investors via a crowdfunding website where a number of people invest small amounts of money in your business, product or idea. An
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entrepreneur’s journey to start up a company is challenging and an equity crowdfunding campaign is a good way to introduce a company’s overall mission and vision to the market. Many equity crowdfunding platforms incorporate social media marketing that allows them to spread the word to their connections to become potential investors. People who view the entrepreneur’s campaign and decided to invest are early adopters that believe in the success of the company in the long run. Early
adopters care about the company’s brand and message and are very important to every business, as they will help spread the initial word without asking for anything in return and are likely to become loyal customers. Equity crowdfunding campaigns also attract experienced investors, who can bring new skills and opportunities to the business and accelerate its success. The downside is that entrepreneurs will end up owning a smaller share of the business and in some cases
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MONEY
they may have to consult their investors before making certain management decisions. This type of finance is usually more suitable for start-ups or businesses with high upfront investment costs or those without a creditworthy financial history. This is because investors share the business risk and businesses won’t have to service fixed repayments or guarantee ever to repay the funding. Peer To Peer Finance (P2P) P2P is also based on crowdfunding principles as it uses the Internet as a platform to reach hundreds or even thousands of potential investors who offer small amounts of money to finance businesses in return for monthly installments of capital plus profit. P2P uses innovative platform technology that allows it to reduce operating costs and streamline processes to minimise the cost and complexity versus conventional finance routes. P2P provides businesses with access to finance in weeks rather than months at rates lower than most conventional lenders and on more flexible terms. This makes it the right choice for established creditworthy SMEs looking to finance working capital or expansion. P2P also known as “marketplace finance”
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Crowdfunding may be a new concept in the UAE, but it has proved itself an extremely successful and trusted model in Europe and the US over the past 10 years is already a very successful practice in the UK and US, where Lending Club, the largest player in the industry, exceeded expectations in raising more than US$865 million in its recent IPO. Lending Club, as well as other P2P providers such as Funding Circle, has grown rapidly by offering loans and savings products at terms more attractive than traditional banks. P2P originated around US$9 billion of loans globally in 2014, and is forecasted to grow to US$1 trillion by 2025. In November 2014, Beehive was launched as the first P2P financing platform in the UAE, authorised and licensed by the DMCC, with a vision set to revolutionise the SME finance industry. Using innovative technology, Beehive has developed an online marketplace that directly connects established businesses with smart investors enabling SMEs to get faster access to lower cost finance and investors to get better, monthly returns. Beehive’s focus is to serve established creditworthy SMEs looking to finance working capital for expansion and growth.
Businesses seeking investment starting AED 100,000 gain access to individual investors who bid to provide the financing. The SMEs receive funding typically in 14 to 18 days and investors receive monthly repayments at annual target rates of between 8 percent and 20 percent while investing from as little as AED 100. Beehive is successfully channeling around AED 2 million of finance per month to SMEs and that figure continues to grow. A wide variety of businesses have requested finance through the Beehive platform, ranging from an HR consultancy, a digital agency and a coffee supplier, to a pet supplier and, a plastics manufacturer. Beehive’s investor base is equally as varied and includes investors across different nationalities and age groups. The timing is absolutely right for the UAE to embrace P2P finance and other forms of crowdfunding, and provide a template for the rest of the region as to how these marketplace models serve to benefit businesses, investors and the wider economy. l
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MONEY
Global bond experts to discuss the future of the rapidly emerging green bond and sukuk sector The Global Ethical Finance Forum (GEFF) to be held in Edinburgh on the 1st and 2nd of September will feature the first global conversation of experts on the nascent yet rapidly growing green bond and sukuk sector and how corporations can benefit from this marketplace
he green bond and sukuk market has witnessed exponential growth and dynamism over the past few years, in large part due to the pivotal role of organisations such as the World Bank, European Investment Bank (EIB) and Kreditanstalt für Wiederaufbau (KfW) among others. According to the Climate Bonds Initiative, Green bonds, “fund projects that have positive environmental and/ or climate benefits. The majority of the green bonds issued are green ‘use of proceeds’ or asset-linked bonds.”
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Green Bonds Green bond issuances have risen from US$36.6bn at the end of 2013 to US$53.2bn by the end of 2014, being issued by 73 different issuers. Among the world’s biggest issuers are the World Bank and the European Investment Bank (EIB). The World Bank, one of the originators of green bonds, issued US$3.1 billion in 2014. These bonds were met with robust demand multiples by investors as they provide positive returns while keeping environmental factors in consideration. Another key market player - the EIB - continues to be a prolific issuer of green bonds and ended 2014 as the world’s top issuer, with US$5.6bn green bonds issued in 2014.
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Islamic Finance The Islamic finance industry has also shown keen interest in the closely aligned socially responsible investment sector when it supported the issuance of the popular issuance of the US$500 million International Finance Facility for Immunization (IFFIM) sukuk and the US$100 million ringgit SRI sukuk to fund schools by Khazanah Nasional, the sovereign investment fund for Malaysia. Reuters, the global news and information company, projects that in 2015 alone, companies will issue a record US$30bn in green bonds, in large part due to growing demand from investors who seek a positive impact and factor sustainability and environmental issues in their investment decision making. Despite the phenomenal increase in green bond sales, commonly agreed standards on what constitutes a green bond, as well as transparency over how proceeds are used, are still in debate and constitute a hurdle for green bonds going mainstream. l
Did you know? The Green bond and sukuk sector grew by 50% compound annual growth rate according to the Climate Bonds Initiative
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Corporate Social Responsibility By: James Mwangi, Managing Director, AFFRONTA DMCC
The rise of Africa has brought together two powerful forces – how to succeed in doing business in Africa, and how to positively impact the communities around which businesses are being set up
ow companies are combining their need for very high business returns in these frontier markets with the need to positively impact the local communities is differentiating and setting apart who the real winners are in corporate Africa; This is especially true for sub-Saharan Africa which is rapidly emerging from decades of under-development and blatant run-down by both poor public and corporate governance and the absence of proper corporate social responsibility The recent ‘Africa Rising Seminar – Invest, Trade and Expand’ held in mid-April 2015 and jointly organised by AFFRONTA and DMCC helped to raise the level of engagement and understanding between the many stakeholders within Middle East in the rising Africa story. The speeches delivered and the conversations had dwelt mainly on the economic growth and advancements in Africa
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as well as the impact in attracting foreign direct investments (FDI) into Africa. What may have been lost were the implication and the impact of foreign direct investments on the lives of the local communities. The ultimate success of any business organisation is to be profitable and to improve the quality of life for everyone connected to the business - including the customers, the employees and the local community. This is especially true of Africa where the impact of a dollar has an exceedingly higher correlation to the welfare of the community relative to most other regions of the world. This is understandable given that majority of the people in these country-markets live below the international benchmark of the poverty line of US$2 daily consumption (World Bank, 2011). To begin to understand the connectedness of success, sustainability and impact in advancing business, it is important
AFFRONTA is a leading go-to consultancy for trade and capital flows between Africa and Middle East. We provide cutting edge advisory services and solutions to businesses directed at making the work of decision makers easy and quick to help take advantage of opportunities while minimising risks and costs. Email: james@affronta.com; Tel.: +971505499406; Website: www.affronta.com
Market trader in Oromia, Ethiopia
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people
The ultimate success of any business organisation is to be profitable and to improve the quality of life for everyone connected to the business including the customers, the employees and the local community
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to highlight the many macro-economic variables in the Africa rising story. If you are thinking of investing in, trading with or expanding your business into Africa, here is what you need to know to appreciate the careful tapestry of successful business and good corporate social responsibility. Areas of Corporate Social Responsibility Community Sustainability: As a business investing in Africa, it is advisable to aim at building sustainable communities through strategic community investments. Become an important part of the communities you operate in by involving yourself in initiatives that raise awareness, tackle social issues and make a difference. Initiatives and programes around education, health and community development are likely to get you into the good books of the local communities. If you can’t give money, volunteer in social activities. Skills Development for Talent Sustainability: As a business investing in Africa, it is advisable to recruit from the local community as a faster way of integrating your business into the local market. This may not always be practical when you are starting up as there is shortage of very highly qualified people but you should consider expat employment as an interim solution and as a way of knowledge and skill transfer after which you should fill the positions with local staff. This will in the long run save your company money as well as help your company integrate quickly into the local community. Aim at promoting joint partnerships with local universities and training institutions as a way of attracting good skill and top talent to your company. Avoid Corruption for Market Sustainability: By working in an African market, integrity,
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professionalism and compliance should extend through the services that you offer, the clients with whom you engage, the professional standards you uphold, the employees you hire and promote, and the communities where you live and work. You should aim to act with integrity by complying with all applicable laws and regulations and the upholding of the highest professional standards. Your core values should illustrate your commitment to the highest principles of personal and professional conduct guiding how you relate with your employees, customers, vendors and the general marketplace. Avoid corruption as the only way to get ahead of competition. There is a corrupt side to Africa, and there is not. Using corruption in your business dealings is not sustainable and is likely to land in trouble (or jail) sooner than later. As a general rule when tempted to use corruption, consider that it is quickly becoming unacceptable to bribe public officers and the general public. Avoid corruption and the word will get around which will most likely land you into the good books of many including your customers and authorities. This can only be good for your business. Environmental Sustainability: If you are investing in the continent, it is advisable to aim at reducing the impact on the environment through conservation, innovation, new technologies and behavioural change. Make environmental
Initiatives and programes around education, health and community development are likely to get you into the good books of the local communities. If you can’t give money, volunteer in social activities conservation part and parcel of your activities. Promote the conservation of natural habitats by championing activities such as tree planting, conservation of natural habitats and wild animals, working with local conservationists to preserve and protect the environment, and creating and engraining environmental consciousness and best practices into your company’s core business processes. AFFRONTA – Local knowledge at global standards AFFRONTA is a leading go-to consultancy for trade and capital flows between Africa and Middle East. We provide cutting edge advisory services and solutions to businesses directed at making the work of decision makers easy and quick to help take advantage of opportunities while minimising risks and costs. l
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LEGAL
Dubai Residence Visas
Owing to the stable government, sound policies, well developed infrastructure, ideal geographic location and the absence of taxes on income for most business activities, along with its year round sunshine, vast deserts and natural scenic destinations, luxurious hotels, resorts and exotic shopping centres, Dubai has emerged as an ideal destination for nationals of different countries
ubai and the UAE as a whole, has continuously improved its tourism industry by providing a number of available visa options ranging from 96 hours Transit Visas, Tourist Visas to long term 90 Days Visit Visas, and recently the introduction of multi-entry visas for tourism and medical purposes. Aside from the normal visas that must be procured prior to entry into the country, it has also continuously welcomed foreigners by offering ‘Visa on Arrival’ privileges to nationals of approximately 50 countries, aside from nationals of member countries of the Gulf Cooperating Council. However, if your intent is to make Dubai your permanent residence, Dubai also offers a number of options for non-citizens to gain permanent residency in the Emirate. The following are some of the options:
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Employment Based Residence Visa Individuals who are able to gain employment with resident Companies in Dubai are entitled to have residence visas. An employee is normally given a two years residence visa based on the employment relationship, whereas employees of Companies under Free Trade Zones are provided with three years residence visas. As the employer, the Companies will stand as the sponsor for the employees, whose visas are renewable relative to the duration of their employment. The employer themselves at their own cost, will arrange for the procurement of the residence visas for their employees. Being an employment-based visa, it simply follows that the visa will cease as soon as the employment relationship ceases. Requirements for an employment visa would vary depending on the nature of the employment, but standard requirements such as medical tests against communicable diseases apply. Aside from restrictions provided for by the Ministry of the Interior and being
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LEGAL
“Local Companies can freely trade and conduct their activities within the local UAE market and can enter into contracts with the government as a consumer. Alternatively Free Zone Companies can only trade and conduct their activities within the jurisdiction of the Free Zones and outside of the UAE� dependent on the status of the employment relationship, holders of this type of residence visas are subject to the rules and regulations relating to employment as provided for under the UAE Labour Law. Property Based Investor Visa Prior to 2014, the UAE has welcomed property investors by offering a six months property based investor visa. Currently Dubai has spearheaded the move to grant a renewable two years residence visa to investors who have purchased a property in Dubai. The following are the basic criteria to avail of the Property Based Investor Visa: 1. The Property purchased must be a completed and a titled residential property in designated Dubai free hold areas. The Property may either be an apartment in a building or a villa 2. The value of the Property must not be less than AED 1 Million and must have been purchased in cash and not through a mortgage or financing. In case of joint purchasers, each purchaser must have a stake of no less than AED 1 Million to be able to qualify for a property based visa.
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The two years Residence Visa allows the holder to sponsor their first-degree dependents but recent pronouncement and practise suggests that such visas cannot sponsor household employees. This particular type of visa also does not grant the holder the right to work in the UAE. Individuals may be able to apply and procure the Property Based Investor Visa by themselves as it is essentially not difficult, but requires a number of steps and forms to fill and a relatively long stay in Dubai while processing the initial stages of the application with the Dubai Land Department and Immigration. Initial entry in the UAE is required and the type of entry visa (whether tourist or visit – one is distinct from the other) used normally determines whether the applicant can complete the residence visa application without having to exit the country. There are numerous firms that offer assistance in the application process that relatively lessens the involvement of the applicant.
This option is ideal for those whose main intent is just to own a property and enjoy the benefits of residency without any need to work or conduct any business or trade activity. Company Based Investor Visa Investors, whose intent is to have a residency in Dubai and at the same time taking the opportunity to conduct business and trade activities, are better off registering their own companies. There are typically two types of Jurisdiction to incorporate companies in order to avail of a Company Based Investor Visa; Dubai Department of Economic Development Resident Companies (local companies as they are commonly referred to), of which the most commonly used company structure is the Limited Liability Company or LLC, and those Resident Companies operating under the various Free Trade Zones (or simply Free Zones). In both types of companies, main
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LEGAL
Emirates Conveyancing and Saleh Al Obeidli Advocates and Legal Consultants In 2014, Emirates Conveyancing, the largest legal conveyancing practitioner in the East (established in Dubai in 2007), merged with Saleh Alobeidli Advocates and Legal Consultants, creating one of the most experienced and well versed property law practices in the country, offering a full services THAT range from contract execution, conveyancing to litigation and beyond. The association brought about a more comprehensive law practice in the matter of Conveyancing and Escrow services, Offshore and Onshore Corporate Incorporations, Immigration and Visas, Tenancy and Rental Dispute Legal Services and a full range of other legal services including commercial dispute resolution, litigation and general legal practice. We aim to provide our clients with the highest quality of legal support, local experience and service based on international standards. Our strength lies in our in-depth understanding and knowledge of the local laws. For any inquiries on our services, please feel free to contact us at: info@emiratesconveyancing.com and/or info@salehalobeidli.com
categories of activities are normally one of Services, Trading or Industrial. The main distinctions of the two are focused on the ownership of the company and the areas within which the company can conduct its business activities. Foreigners can only own a maximum of 49 percent of the shares in the Local Company, whereas the remaining majority 51 percent needs to be owned by a UAE National. An exception to this rule are companies that are based on providing professional services such as law firms, accounting and consulting companies where the Foreign Investor is allowed to own 100 percent of the company, notwithstanding some certain limitations as to number of employees and the requirement to retain a UAE National as a local service agent. Local Companies can freely trade and conduct their activities within the local UAE market and can enter into contracts with the government as a consumer. Alternatively
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Free Zone Companies can only trade and conduct their activities within the jurisdiction of the Free Zones and outside of the UAE. On Free Zone companies, the Foreign Investor wholly owns the company and there are a lot of free zones to choose from depending on the specific areas of industry. As of today, the UAE has more than 30 Free Trade Zones, with each free zone authority specialising of certain areas of concern, for example Medical practitioners can opt for a company in Dubai Health Care City, educators in Dubai Knowledge Village, Media practitioners in Dubai Technology and Media Free Zone Authority, whilst those interested in logistics and cargo can opt for Jebel Ali Free Zone Authority or Dubai World Central. For trading purposes, a viable option is the Dubai Multi Commodities
Centre that caters and allows most of the trading activities as may be allowed under the rules of the Dubai Department of Economic Development. Under a Local Company and the Free Zone Company, an investor is normally given a 3-year visa. There is no limitation on age, residency or citizenship of shareholders/investors and they enjoy the privilege of sponsoring their dependents along with their household employees in comparison to property based investor visa. There are certain eligibility requirements in order to be eligible for an investor visa under a Company, among of which are the current minimum share capital for the shareholder as required by Immigration rules must be AED50,000 and in some cases, educational qualification is required depending on the designation of the profession in the visa. l
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Transfer Pricing – Considerations On Conducting Business In Africa By Ian Gaeta, Partner, AC&H Legal Consultants
Globalisation has led to business becoming more and more multinational in nature. Global enterprise provides greater flexibility for businesses to structure their arrangements and transactions in more efficient ways. Increasingly, most of the “intra group” arrangements will involve cross-border transfers of goods and services, capital and intangibles such as intellectual property within a multinational group
t is often the case that the prices at which these intra group transfers are transacted (the “transfer price”) are often driven not just by market forces but by group considerations as well. As such, it is common for businesses to seek to have transfer prices for intra group transactions that may be lower or in some cases higher than the arm’s length prices for comparable goods and services. The objective of the multinational enterprise would in such case be to reduce the group’s overall global taxation by shifting profits from associated entities in higher tax countries to associated entities in relatively lower tax countries, which could be achieved through either under‐charging or over‐charging the associated entity for intra‐group transfers for goods and services. Other considerations, which may motivate multinational enterprises to adopt such intra-group profit shifting
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arrangements, may include the intent to use a tax benefit, such as a tax loss, in a jurisdiction in which it operates, such as a current year loss or a loss that has been carried forward from a prior year by an associated company. Some of the key types of intra group transactions that will often be the focus of transfer pricing legislation on the continent include the following: zz Financial arrangements – such as loans, guarantees and cash pooling arrangements with related parties zz Use or transfer of tangible and intangible assets – for example importation of machinery, plant and equipment, lease arrangements for such plant and equipment (for example in the mining sector), use or transfer of intellectual property zz Sales of goods – for instance sale of raw minerals or other bulk commodities from African subsidiaries to offshore related parties, as well as sales of finished products from offshore affiliates to African related parties
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LEGAL
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Services transactions – for example through the provision of corporate and support services, management services and technical services by offshore related parties, use of financial/treasury services provided by offshore affiliates
The concerns arising from these intra-group arrangements include the possibilities of tax manipulation through profit shifting and the potential erosion of the tax base of the countries involved in the transaction. These concerns have led to many countries across the world adopting specific transfer pricing regulations in order to protect against erosion of their domestic tax base. In addition to domestic legislation, there are a number of multilateral initiatives through which various countries cooperate and co-ordinate in developing transfer pricing policy and regulations. Many African governments have become increasingly aware of the need to establish appropriate transfer pricing frameworks in order to protect their tax base but at the same time without disincentivising foreign direct investment in their respective countries. In addition, African tax authorities have built their capacity for identifying various transfer pricing strategies deployed by multinationals and their research capability in benchmarking and conducting transfer pricing analyses. As a law firm routinely advising multinational enterprises doing business in Africa, we have over the last ten years or so seen increased proactivity by African tax authorities in challenging the transfer prices implemented by multinational enterprises operating in the continent and more robust enforcement of transfer pricing regulations. In addition, African tax administrators continue to cooperate both at a regional level and through international initiatives on transfer pricing, in order to build their rule making and enforcement capacity. Some of the major countries in Africa which have implemented specific transfer pricing regulations include: zz zz zz zz zz zz zz zz zz zz zz zz zz
Businesses operating in the continent should also be aware that even in those countries that may not have a specific transfer pricing statute, there will often be general “anti-avoidance” rules under which transfer pricing arrangements could be challenged, despite the absence of specific transfer pricing rules. Although debate continues worldwide as to the appropriate approaches towards such matters as determination of the appropriate benchmarks for transfer prices for various intra group transactions in various sectors, the primary approaches in Africa derive from one of three multilateral initiatives: zz
zz
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The OECD (Organisation for Economic Cooperation and Development) Guidelines on Transfer Pricing The United Nations Practical Manual on Transfer Pricing – which was formulated specifically for developing countries The African Tax Administration Forum - a forum for promotion of mutual co-operation among African tax administrators with the objective of improving efficiency of tax legislation and tax administration
Whilst to some multinational enterprises, the increase in transfer pricing legislation across the continent and the cost of compliance may be seen to be burdensome, a more pragmatic approach would in our view be to acknowledge that transfer pricing and the related questions of base erosion and profit shifting are foremost in the concerns of tax authorities and governments worldwide,
Many African governments have become increasingly aware of the need to establish appropriate transfer pricing frameworks in order to protect their tax base but at the same time without disincentivising foreign direct investment in their respective countries
not only in Africa. As a consequence, robust transfer pricing enforcement is likely to be a constant compliance issue for multinational business. Therefore multinational businesses should look at how best to structure their intra group arrangements in order to mitigate risks of disputes with tax authorities. African tax authorities on the other hand must strive to achieve the appropriate balance between robust tax enforcement and protection of their domestic tax base from erosion whilst at the same time providing sufficient incentive and clarity to multinational businesses operating in their jurisdictions. In our view, a stable and predictable transfer pricing regulatory and administrative framework is better for business and for the economies of African countries than a less well-articulated transfer pricing legislation or policy or opaque transfer pricing administrative framework. l
Angola Egypt Democratic Republic of Congo Ghana Kenya Ethiopia Mozambique Nigeria Senegal South Africa Tunisia Uganda Zambia
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One JLT Q&A
Krysta Fox
DMCC Director of Free Zone What is One JLT? Simply put, One JLT is the most innovative new office building in Dubai. Designed to the highest specifications for the world’s leading companies looking for a premium address in the Gulf region. Its sleek glass box design, with 15 floors including the ground floor, is visually stunning. Its technological specifications, environmental and sustainability credentials, its location and the services on offer make One JLT a unique property offering. As you can tell we are very proud of One JLT and cannot wait to welcome our first tenants in the next couple of months. Who is it designed for? The 2,000 square metre floor plates – one of the many attributes that make One JLT stand out from the
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crowd – make the building an ideal proposition for companies with upwards of 50 employees. Since 2002, DMCC has been stimulating trade in Dubai, opening doors for businesses and individuals to thrive. DMCC has become the largest and fastest growing Free Zone in the region, and we’re continuing to evolve to meet the needs of this dynamic emirate. That’s why we’ve designed One JLT. Occupying a corner plot overlooking JLT Park and within arms reach of prime residential and cultural opportunities, One JLT will provide an ideal setting for regional businesses and large corporates seeking new headquarters. Large, flexible floor plates, professional and sustainable design, and a wealth of upmarket amenities are only a few of the features that distinguish the development as Dubai’s new centre for commercial growth.
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Occupying a corner plot overlooking JLT Park and within arms reach of prime residential and cultural opportunities, One JLT will provide an ideal setting for regional businesses and large corporates seeking new headquarters
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What makes the building so special? One JLT is designed for sustainability— both for the environment and for a future of growth. As a result, the building is LEED gold certified, indicating that its ecologically conscious design will have a positive impact on the health of its occupants. Leadership in Energy and Environmental Design (LEED) is a set of rating systems for the design, construction, operation, and maintenance of green buildings, homes, and neighborhoods. Developed by the U.S. Green Building Council, LEED helps building owners and operators to be environmentally responsible and use resources efficiently. Proposals to modify the LEED standards are offered and publicly reviewed by USGBC’s member organisations, which number almost 20,000. One JLT’s “glass box” style integrates Innovative technologies for energy efficiency and water conservation using green, low carbon and recycled building materials from the Middle East’s sustainable supply chain. Other than Office space, what will be housed in One JLT? The ground floor of the building will be entirely dedicated to retail, and we will have much more to reveal on that in the very near future. Then of course it is positioned right within the already thriving DMCC Free Zone, with all it has to offer, and we are on the doorstep of some of Dubai’s leading communities. Whether our tenants and their employees choose apartment living within JLT’s thriving residential community, the trendy Dubai Marina or a quieter gated villa community,
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the range of options within only a five-kilometre radius of One JLT will suit the demands of any lifestyle. The DMCC Free Zone is complete with a range of restaurants, nurseries and day care centres for children, Beauty salons and medical clinics. Our tenants and their employees will be spoiled for choice by the range of exceptional cafes and restaurants located in the lobby of One JLT and the JLT Park right outside their doors. Who built One JLT and who is the Landlord? DMCC, which has been building, owning and leasing property since 2002, is the single landlord of One JLT. Our DMCC free zone service centre includes everything you need to build and sustain your business, with ease. With an ecosystem of more than 10,700 member companies employing more than 40,000 individuals, DMCC is continuously planning for the bright futures of its members. DMCC was proud to partner with Brookfield Multiplex, One JLT’s experienced contractor with a global Reputation for delivering projects on time and of the highest quality. When can I move in? One JLT is now available for fit out, prioritised for tenants leasing full floors. DMCC is committed to working closely with its tenants to ensure that their needs are met well in advance of building completion. The building will open at the end of October 2015. l
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Its sleek glass box design, with 15 floors including the ground floor, is visually stunning. Its technological specifications, environmental and sustainability credentials, its location and the services on offer make One JLT a unique property offering
One JLT IS A GRADE A OFFERING • Large efficient column-free floor plates • Average density 1: 8½sqm • Shell and core office space • Category A handover conditions available • 4.1m floor-to-floor height • 2.8m raised floor to suspended ceiling • 1,900sqm NLA typical floor • 1 parking space for every 40sqm inclusive in lease • Direct access to the offices from podium parking • Washrooms and pantries serving each floor • 26,000sqm office space • 1,000sqm retail space TOWER AMENITIES • Visitor parking and valet services • 8-minute walk to nearest metro station • 5 high-speed passenger lifts (3m/sec). Wait time 7sec • non-peak and 77sec in peak period • 1 service lift • 24-hour security with access control & CCTV • Quality retail on ground floor • Washrooms and pantries serving each floor • Common prayer room – level 1 • Showers & changing rooms accessible to occupants
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August 2015 | 49
marketing & Advertising
What’s The Story, Marketing Glory? By: Jim Wheat, Marketer & Dollarsandart Founder
I really believe story telling is THE most single important factor in creating a brand image that remains popular and in the public consciousness for years to come!
he art of marketing is all about story telling; about creating a narrative for or around the brand that customers can remember and relate to. Rather than simply telling customers that your company has this ethos or that culture, providing them with a history of your company as well as a reason why your company is so important, it can make your brand image so much more believable. Think about ‘Brand Dubai’ in the context of this article and how Emaar billed downtown Dubai as ‘the most prestigious km2 in the planet’ back in 2005. This became a reality when the dream was realised as ambition rose up from the sand. Here’s a few more examples – a couple of global benchmarks, one a disaster and the final one something far more personal that I would like to share.
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Microsoft – The Power of Story One of my first memories was being read a bedtime story! We are wired to listen to stories, love stories and tell stories. Harvard business recently homed in on how storytelling prompts the body to produce the neurochemical oxytocin. Oxytocin is the “feel-good” hormone, a lower dose of adrenaline if you will. It is also released when people demonstrate trust or kindness toward one another. So, if your brand and marketing content can prompt the body to produce oxytocin, then you know you’ve done something right. A great place to start is make it emotionally intelligent, crammed full ‘keeping it real’ stories that people can relate to. That’s exactly what Microsoft has done. And that’s exactly why Microsoft’s content is so compelling. Microsoft isn’t supposed to be emotional but dig deeper and you will see it is. Far form only producing heartless
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marketing & Advertising
Jim Wheat
software, it has become a place where dreams can be imagined, accessed and even realised. Software isn’t meant to be a topic to produce random acts of kindness ; group hugs of high fives with feel-good surges… or is it? Microsoft thinks that it can be, and the blog “Stories” proves that. “Stories” is just that — about people that don’t contain the word software. They’re human-experience stories of overcoming adversity, challenge, and hope. It’s a place where software is given an aspirational quality that was previously untapped in the sector. So while the world’s largest software company continues to feed it’s community with real stories about real people, they are successfully connecting their community in a very powerful way and it is building their brand in an emotionally intelligent way. Disney: Story First, Product Later To illustrate how effective a narrative can be in branding and
Microsoft isn’t supposed to be emotional but dig deeper and you will see it is. Far form only producing heartless software, it has become a place where dreams can be imagined, accessed and even realised
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profitable marketing, we can look another multi-national corporation – this time Disney! Will Burns, writing in Forbes.com, explains how Disney puts its stories first, then develops, markets and sells its products second. While it may be a marketing model that only works for media and entertainment businesses like Disney, it illustrates how brand stories can be the most powerful driver for marketing and sales. While other brands work the other way around, building stories around products, Disney’s reverse content marketing strategy enables it to extend the original story into everything from products to experiences. As for whether it’s working or not, the latest figures according to Forbes.com show that Disney’s profits were up a massive 22 percent in 2014, whilst revenue increased by 8 percent. GAP: Weakened Brand Identity At the other end of the scale, the clothing giant Gap, one of the most successful brands of its kind, recently announced that it is
closing 175 of its North American stores due to poor performance. This poor performance had a lot to do with a weakened brand identity according to the team at Adweek who published a hard hitting article entitled “Gap: Once effortlessly cool, now everything and nothing to everyone.” This was attributed to the latest creative campaign, headed with the tagline “Dress Normal”, which had floundered in its attempt to appeal to a mass market. With a previously strong brand like Gap now potentially having a weak identity something needed to be done to address this. I would roll out the story telling machine and feature real stories about real people who wear Gap. Case studies featuring its target market ranging from college kids after graduation, down at the ball game or off for a coffee at mall. Tell me more about these people and why they wear Gap – give me some personality, share their story with me!
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marketing & Advertising
A great place to start is make it emotionally intelligent, crammed full OF ‘keeping it real’ stories that people can relate to. That’s exactly what Microsoft has done Sir Ian Botham Auctioned Artwork Cricketing legend Sir Ian Botham recently invited me to put up an Artwork for auction. Although I’m not a big fan of cricket I do remember him once telling me he suffers from being colourblind – specifically the colours ‘Red and green’ – which is ironic considering he played top flight cricket facing a red cricket ball on green grass! I knew what a privilege it was to be able to support this birthday bash with painting Dollarsandart ‘Red & Green – Colour blind’ for the auction. But I had to think carefully about the picture and what how I wanted my brand to be portrayed at the party. I thought long and hard about the story behind my paining and decided to pay homage to the fact that Sir Ian is colourblind. Living with a perceived weakness can often bring out the best in us as human beings - the artwork paid testament to this and silenced the room and drew an instant respect to the subject at hand which was auctioned for charity in a flash. Conclusion The sooner that brands realise the importance of integrating authentic storytelling into their brands the better! An effective story should relate to the target market of the brand, ideally with an emotional connection that will in turn lead to an empathy with the service and products on offer. In this digital age of saturated information it is even more important to stand out from the corporate clutter drowning at sea, and enjoy the uncontested space of unchartered, calm waters. l Not the end, the beginning!
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Tell stories, and make your content about people. You need to speak as a human to other humans. Three easy steps to speak human: • Be storied • Be humble • Be relevant Stories first: product later! The sooner Marketers realise the stories we can relate to, feel and appreciate often bring the emotional connection that could gain a deeper connection with your brand and later lead to a purchase If your brand is considering a reinvention, it’s crucial to include this vital element of story telling to engage customers with the ‘evolution’ of your brand. Many people fear change, but they also love a good story The more authentic the story then the more chance for it to really make an impact. It was less about the brush strokes and far more about the story, the strength and the fortitude of how Sir Ian Botham overcame his weakness
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technology
UAE Consumers Beat Global Average in Technology Usage Tech savvy consumers in the UAE are more active on social media platforms than the global average is the conclusion of findings of a new global report commissioned by BT and Avaya. The report also revealed that majority of these consumers will develop a higher loyalty to brands that are transforming their customer experience beyond the traditional call centre
he ‘Autonomous Customer 2015: On hold for Intelligent Customer Service’ study, covering 5,500 people in 10 countries, looks at the attitudes of consumers who research and make buying decisions online, and prefer to interact with organisations on their own terms. The research revealed that consumers in the UAE are among the most tech savvy in the world, regularly using a wide variety of different social media and communications platforms. According to the research, they are 20 percent more active on Facebook than the global average. They are 34 percent more active on MSN and web chat, and 30 percent more active on WhatsApp. They are also more active on Skype than any other country in the research, with 50 percent of them using it several times a week.
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These tech-savvy consumers now expect businesses to keep up. As a minimum, customers expect to be offered a variety of channels to communicate with organisations (89 percent). They also want organisations to offer the technology they are most familiar with; 83 percent say they would post a customer service comment on Facebook, and 78 percent are interested in using Skype to speak to an agent. UAE consumers are also keen to see new technology such as interactive voice recordings with smartphone screen visuals (84 percent) and web chat (83 percent). There is also strong demand to be able to switch from social media to phone in a continuous conversation with one agent (81 percent). This research presents a real opportunity for businesses in the UAE as the research also showed that consumers in the UAE buy more from (89 percent) and are more loyal
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technology
“Organisations have to align themselves with rapidly changing consumer expectations,” says Wael El Kabbany, Vice President, BT in Middle East and North Africa (83 percent) to businesses who can make the customer service process easy. “Organisations have to align themselves with rapidly changing consumer expectations,” says Wael El Kabbany, Vice President, BT in Middle East and North Africa. “Convenience is now a top priority for consumers, and organisations need to recognise this. For the autonomous customer convenience
means flexible, multichannel support whereby customers can communicate with an organisation using the channel which works best for them.” “The private and public sector in the country is undergoing an immense transformation to map to the aspirations of its citizens, residents, and visitors, in keeping with the priorities envisioned by the leaders. Effective two-way or multiparty engagement between businesses and their stakeholders improves the overall business climate, and can be a huge driver towards improving the overall happiness of people,” said Savio Tovar Dias, Director for Sales Engineering, Avaya Global Growth Markets. “Customer loyalty is often said to be a thing of the past, but this research identifies a fantastic opportunity for businesses in the UAE to continue striving to win that elusive customer allegiance. Organisations should make sure they are
doing enough to make customer support the most seamless and convenient process for their customers.” l
USA
SPAIN
UK
BELGIUM
GERMANY
UAE
CHINA
SINGAPORE
INDONESIA
82%
88%
79%
58%
69%
89%
91%
84%
86%
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August 2015 | 55
technology
Popular Fitness Tracking Devices an Easy Target for Hackers Health and Fitness trackers, the sales of which are expected to double this year, are an easy and increasingly popular means of recording and analysing exercise and activity. This convenience comes at a risk however warns ESET, as hackers potentially exposing a trove of fitness data from wearables, can easily intercept the data these devices transmit
hey are designed to continuously monitor very personal data about the users health and life patters, the information they transmit can represent a great deal of information about the individual,” said Mohamed Djenane, Security Specialist, ESET Middle East. “There is no doubt that people would feel comfortable knowing that this personal information is being accessed by a unknown stranger.” According to Djenane, the security vulnerability arises out of the use of Bluetooth Low Energy (BLE) technology that connects these devices to things like smartphones and tablets. Bluetooth Low Energy has proven quite popular as it considerably reduces power consumption, making it ideal for devices that are constantly transmitting information such as wearables. The downside of this is that this constant data travel potentially leaves it open to interception by hackers. These trackers have security measures meant to protect their device addresses. “In many cases that we
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have seen, the random addresses for BLE devices are poorly implemented or not applied to certain devices, meaning that devices either remained fixed or poorly randomised. As a result, an app and a smartphone are enough for hackers to intercept private data,” warns Djenane. While the assumed 50-meter BLE range would limit the scope for malicious activity, there’s the possibility that an attacker could increase the range. In demonstrations, researchers have managed to boost regular Bluetooth’s range eight-fold with a directional antenna. If the same could be done here, the privacy threat becomes greater. “The take-away for users is that new and emerging technologies usually have associated IT security risks. Unfortunately, hackers seem to uncover these faster than device manufacturers. So it helps to stay weary, and keep yourself constantly aware of the latest threats to make sure the next device you purchase doesn’t compromise your security,” concludes Djenane. l
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technology
As an industry, we can’t expect that homeowners to patch their home security systems every Tuesday.
Businesses can track inventory across their global supply chains in real time. Analysing data collected by sensors and other devices can be used to fine-tune the customer experience and identify new revenue opportunities.
The Network Must Protect the Internet of Things
By: Manish Bhardwaj, Snr Marketing Manager, Aruba Networks
If you’re always on the hunt for your keys and wallet, the Internet of Things (IoT) is here to make your life easier. You can attach small wireless tags to your favorite things and track them with a mobile app, or unlock your front door as you pull into the driveway. Worried that you forgot to close the garage door on your way out? Just check your phone or tap your smart watch ou can control your home’s temperature from the office, turn on the lights from the couch, and watch video from your home security system while on vacation. Smart cars, digital health monitors, digital signage, utility meters, and many, many more devices will make our lives easier and better. It’s just the beginning of what wireless devices and sensors can do for us! IoT can make the workplace better, too. It’s more than automatically adjusting the lighting and temperature in the office. It’s the creation of digital assistants that know us deeply and act intuitively for us — anything from helping us find our way to knowing that we’re running late for a meeting and notifying the other parties.
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Stopping Threats Before They Start Hackers have some great ideas about what they can do with the IoT, too. It might start with mischief, but real harm can be done which can range from privacy violations to physical harm to cybercrime. According to a study from HP Security Research, 70 percent of the most commonly used consumer IoT devices contain serious vulnerabilities. HP found an average of 25 vulnerabilities per device. The industry is just beginning to tackle security for the IoT. As an industry, we can’t expect that homeowners to patch their home security systems every Tuesday. Nor can we expect the wireless sensors and devices in our workplaces to protect themselves. Our laptops, even with powerful chips, rich operating systems and added security measures, can barely fend off the attackers. We think the network will play a pivotal role in connecting and protecting the diverse range of IoT devices that will transform the workplace, as we know it. Advanced network policy management tools will interrogate IoT devices, assess their capabilities, and determine whether or not they should be allowed to connect. From there, the network will dynamically provide IoT connectivity while continuously analysing its traffic for integrity. The good news is that many of our customers already have the foundations of this security model in the policy enforcement firewall and network policy management system that are part of their wireless LANs. And we are working on further innovations in this area to extend this protection to the coming explosion of wireless sensors and devices. l
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hospitality
Dubai’s Lagoon Of Luxury Spas, Fine Living And Dining Anantara’s The Palm Resort and Spa is idyllic lagoon resort and a Palm Jumeirah hotel unlike any other. Inspired by traditional Thai architecture its 237 rooms and villas overlook beautiful lagoons and stunning tropical gardens nantara in Sanskrit means ‘without end’ and the luxuries offered by this hotel and spa truly live up to its name. From its signature spa treatments to the epicurean delights of its restaurants, the pleasures offered at this hotel seem to be endless. In this oasis of beauty, luxury and tranquility you can find the perfect mind and body balance by drawing inspiration from the relaxation and health practices of the world’s richest cultures. The dedicated management and teams of highly skilled professionals can work magic on your body and soul. Exotic balms and oils are used in holistic healing treatments that will leave you feeling an inner peace and projecting an outer radiance unlike any you have experienced before. For family holidays Anantara offers the perfect blend of activities that the whole family can enjoy together. The family friendly villas and luxury rooms are the perfect ambience for spending quality time with your loved ones. While staying in the Lagoon Access rooms, you can step out on to your verandah and dive straight into the crystal blue waters of the lagoon for a refreshing swim and an unforgettable time having family fun in the sun.
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Then delve into an endless buffet of delicious world flavours for breakfast at the Crescendo restaurant. If you would like to step out with the family, arrangements can be made on the spot for Dubai’s first Thai long tail boat for a memorable trip to Dubai Marina and back. Time alone can be spent taking a leisurely stroll in the beautiful lush gardens or simply relaxing at the world-class bars and grills. Youngsters are entertained with fun games, arts and crafts at the Tuk Tuk Kids Club and Chill - the Anantara’s fun teens’ club. For adults one of the many highlights of this hotel is the Bushman’s Restaurant and Bar. With its rustic outdoors ambience and charcoal ovens roasting succulent cuts of meat and fresh seafood, Bushman’s is a sensory feast. You can kick things of with an Australian beverage and healthy helping of Moreton Bay Salad. Follow it up with Kangaroo Sirlion cooked in traditional Australian outback style which contrary to its popular image makes for surprisingly fine dining. Your taste buds will explode with the grand finale of the Australian Constructed Pavlova. This supreme desert is prepared right there at your table with meringue, mouse, chocolate soil and a host of other exotic
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hospitality
garnishes. The Bushman’s Restaurant is a unique dining experience you are unlikely to forget any time soon. The Mekong is another fine cuisine restaurant in keeping with Anantara’s Asian roots and offers Thai, Chinese and Vietnamese delicacies. The restaurant’s signature dish is its Papaya Salad with a choice of shell crab or grilled chicken. Unlike most oriental restaurants the Mekong offers a distinct homemade touch to most of its dishes. The Beijing Duck is to die for and the Chengdu Spiced Lamb is simply out of this world. You can then round things off by tasting a Crème Brulee with an oriental twist. The Mekong is an authentic far eastern gastronomic treat of the highest quality. For business meetings and events the Resort offers the perfect locale for executive meetings, beachside company retreats, gala dinners, or inspiring themed events. Whether you want to impress clients before signing the next big deal or reward staff members for a job well done, the Anantara Palm Resort and Spa offers all the facilities and features to create an atmosphere of relaxed luxury and professional bonhomie. For more personal events, the Anantara staff takes delight in customising their five star hospitality down to the smallest details suiting every kind of taste. The signature L.O.V.E package will provide true romantic inspiration. This way you and your guest can rest assured of an experience that will create memories to last a lifetime. Experience intimate touches throughout your stay, from romantic in-room decoration, candlelit bath rituals and special turndown surprises, to a champagne breakfast in bed and the magic of a fully personalised Dine by Design journey, which transports your business trip to a romantic few days away – providing you the time to completely unwind in-between all of your meetings. Even the luxury spa has specially designed massages for couples. With its world-class facilities and bespoke restaurants and spas, the Anantara Palm Resort is a truly a exotic, world class experience with a warm and attentive service staff to make you feel the comfort of home in a setting of incredible luxury. l
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August 2015 | 59
property
Sharjah steps-up awareness campaign as rental rates fall 3% Steady demand and stable occupancy rates for Ras Al Khaimah, Fujairah and Umm Al Quwain. In Ajman, rents down 3% on handover of new supply
enewed confidence in the long term potential of Sharjah’s residential sales market could gain momentum, with the imminent relaunch of land sales at the Shoumous Residential Complex, according to the latest Asteco Northern Emirates Q2 2015 real estate report, as the emirate begins to feel the effects of a reverse relocation trend to Dubai. Located on the Sharjah-Kalba Road, the project targets GCC and Arab nationals, and was initially launched following the success of plot sales within the Tilal City master planned development. “Sharjah’s sales market has opened up in recent months. However except for land plots at Tilal City that were priced in line with market demand, few properties have actually been sold due to the high asking prices, which failed to match buyer expectations. The lack of activity was further compounded by a wave of affordable project launches in neighboring Dubai, which diverted prospective buyer interest,” said John Stevens, Managing Director, Asteco.
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“Sharjah is also losing out is Dubai’s more established real estate market as it has more transparent pro-buyer legislation in place,” he added. In its UAE Property Review – Q2 2015 Report – the Middle East’s largest independent full service real estate company reported a slow second quarter for the Northern Emirates with the residential leasing sector generally witnessing marginal declines with the exception of Umm Al Quwain and Fujairah where rental rates remained stable. Another project currently under development with potential to enhance interest in Sharjah, is the 45,470-square metre Al Noor Island. According to the Sharjah Investment & Development Authority (Shurooq), the land is expected to be handed over at the end of 2015. With a central butterfly design theme, the development will feature a natural butterfly habitat housing over 500 species, a 3,500-metre walkway and floating bridge serving as an entrance to the island, a literature pavilion, children’s playground, and an egg-shaped art sculpture.
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property
The tourism and residential project is expected to increase awareness of the emirate and its market potential, which Asteco says will potentially drive higher rates and popularity to central Sharjah areas, especially along the Corniche. “The Northern Emirates real estate market closely follows the Dubai market, with a few months delay between recovery and periods of stabilisation, so new project announcements and the timetabled completion of developments such as Al Noor Island are vital elements in securing investor interest and confidence in the months to come,” noted Stevens. For Sharjah and Ajman landlords, a 3 percent quarter-on-quarter drop in residential rental rates was prompted by a rise in vacancy levels as new supply was handed over and the reverse relocation trend to Dubai, which has started to gain momentum. The report noted that enquiry levels were also lower compared with the previous quarter. Tenants can currently rent a two-bedroom apartment on the Sharjah Corniche from AED 4880,000 per annum or AED 3240,000 in Ajman. Asteco reports that although residential rental rates declined in Q2 2015, they were still higher in comparison with the
“The Northern Emirates real estate market closely follows the Dubai market, with a few months delay between recovery and periods of stabilisation, so new project announcements and the timetabled completion of developments such as Al Noor Island are vital elements in securing investor interest and confidence in the months to come” John Stevens, Managing Director, Asteco
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For Sharjah and Ajman landlords, a 3 percent quarter-onquarter drop in residential rental rates was prompted by a rise in vacancy levels as new supply was handed over and the reverse relocation trend to Dubai, which has started to gain momentum previous year in Fujairah, Ras Al Khaimah and Umm Al Quwain. “Another reason for the decline in Ajman has been the handover of new supply in recent months. We’ve seen a large amount of new stock entering the market, at a time when newcomers to the city were fewer. This resulted in an internal movement, away from older buildings to newer properties, particularly one and twobed units, as tenants upgrade,” said Stevens. Ras Al Khaimah has been the Q2 2015 success story with established communities such as Al Hamra Village and Mina Al Arab, continuing to witness good levels of demand and high occupancy rates, especially for quality competitively priced villas and townhouses. “This prompted the launch of the second phase of Flamingo Villas by RAK Properties, following strong sales performance for phase one, where villas achieved just over AED 600 per square foot; a similar price to that of a three-bedroom in Al Hamra with golf course view, which sell for AED500-700 per square foot,” remarked Stevens.
Phase one of Flamingo Villas is expected to be handed over in late 2015 with 57 two and three-bedroom units ready by the end of 2016. Rental rates in high-end Fujairah buildings put a two-bedroom unit at an annual figure of AED55-62,000; in newer Ras Al Khaimah developments at AED5065,000; with Umm Al Quwain the most affordable at AED28-30,000, albeit with lesser quality stock. There is also a positive outlook on the horizon for the office sector despite a commercial rental rate drop this quarter of 3 percent, with the Business Confidence Index (BCI) showing a positive outlook for the remainder of 2015 according to the Sharjah Chamber of Commerce & Industry (SCCI). The SCCI highlighted companies’ positive sentiment in Sharjah as firms plan to hire more employees, which, says the Asteco report, may translate into improved demand for office space in popular areas such as Corniche, Al Nahda and Al Tawuun. l
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property
The United Arab Emirates Ranks Eighth Among Top 10 Countries for LEED Green Building The UAE remains the leader in the Middle East in green building construction and design
he US Green Building Council (USGBC) announced that the United Arab Emirates ranked eighth on USGBC annual ranking of the Top 10 Countries for LEED, the worlds most widely used and recognised green building rating system. The Top 10 Countries for LEED list ranks countries in terms of gross square meters and numbers of LEED projects to date. The announcement comes at a time of increased international focus on climate change mitigation in the lead up to the United Nations’ COP21 climate negotiations this December. The increased popularity of LEED throughout the UAE is reflective of the aggressive push to achieve greater economic diversification, and USGBC’s recognition of the green building community is timely since it follows the Government announcement last month that the non-oil related sectors have seen 8.1 percent growth in 2015, meaning that these sectors of the economy are on target to constitute as much as 80 percent of the Emirates national gross domestic product (GDP) by 2021. The international green building market is also projected to see significant growth in the next 10 years, and the UAE is poised to benefit from this rapid market expansion. USGBC’s announcement also follows a report from the World Bank in June that noted that the UAE has seen an unhealthy spike in PM 2.5 air pollution. LEED is known for its emphasis on improving indoor environmental quality for building inhabitants, and people typically spend 90 percent of their time indoors where air quality tends to be much worse than outdoor air quality.
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“LEED-certified buildings help ensure that our collective legacy to our children, and our children’s children, is founded in environmental stewardship, high standards of human health and a desire to ensure that our economic growth occurs in a forward looking and responsible way,” said Rick Fedrizzi, CEO and Founding Chair, USGBC. “The United Arab Emirates has become an increasingly important center for the global green building movement, a development that will help provide greater environmental health and increased economic opportunity for its citizens and will hopefully help to inspire a robust green building market throughout the Middle East.” The 10 countries that made the list for 2015 are geographically and culturally diverse, representing seven of the worlds 20 largest single-nation economies by gross domestic product (GDP) China, Germany, Brazil, India, Canada, South Korea and Turkey - as well as six of the top 11 emitters of greenhouse gases - China, India, Germany, South Korea, Canada and Brazil. The analysis used to develop the list ranks countries in terms of gross square meters (GSM) and numbers of LEED projects to date. LEED-certified spaces use less energy and water resources, save money for families, businesses and taxpayers, reduce carbon emissions and create a healthier environment for residents, workers and the larger community. The United States, the birthplace of LEED, is not included in this list but remains the largest global market for LEED whilst also being the world’s second largest emitter of greenhouse gases.
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property
Every day, nearly 172,000 GSM of space is certified using LEED, and there are currently more than 69,800 commercial and institutional projects representing 1.23 billion GSM of space participating in the green building rating system. An additional 76,500 residential units have been certified under LEED for Homes. LEED projects can now be found in more than 150 countries and territories across the world. (See table below). The international popularity of LEED is reflective of the exponential growth occurring within the global green building industry. Increasing consumer demand has pushed the global green building market to US$260 billion in 2013, and this industry surge has led to a corresponding increase in the scope and size of the green building materials market, which is expected to reach US$234 billion by 2019. Internationally renowned landmarks as diverse as the Empire State Building, the Maracanã Stadium and TAIPEI 101 are now LEED-certified spaces that illustrate the impact that sustainable construction and design are having on our shared culture. At a time when the international community is looking to the United Nation’s negotiations in Paris as a historically significant chance to come up with real, binding solutions to climate change, the global popularity
of LEED is a sign that a “green economic miracle” is well within reach. The success of LEED demonstrates that there are proven, internationally credible solutions to some of the complex questions surrounding climate change mitigation that can help stimulate economic growth while also avoiding harmful economic disruptions. With buildings accounting for up to 30 percent of global emissions, a commitment to the rapid transformation of the global built environment seems to be one solution that the entire world can get behind.
The full ranking Rank
Nation
GSM of LEED certified- space (million)
Total GSM of LEED-certified and registered space (millions)
Total number of LEED-certified and registered projects
1
Canada
26.63
63.31
4,814
2
China
21.97
118.34
2,022
3
India
13.24
73.51
1,883
4
Brazil
5.22
24.50
991
5
Republic of Korea
4.81
17.47
279
6
Germany
4.01
8.42
431
7
Taiwan
3.84
9.08
149
8
United Arab Emirates
3.13
53.44
910
9
Turkey
2.95
23.74
477
10
Sweden
2.54
4.20
197
*
United States
276.90
727.34
53,908
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“LEED-certified buildings help ensure that our collective legacy to our children, and our children’s children, is founded in environmental stewardship, high standards of human health and a desire to ensure that our economic growth occurs in a forward looking and responsible way” Rick Fedrizzi, CEO and Founding Chair, USGBC A sample of notable projects that certified in the UAE in 2014 include: • Abu Dhabi: International Tower, Capital Center, LEED Gold • Ajman: Ajman Saray-A Luxury Hotel and Resort, LEED Silver • Dubai: Panasonic Avionics, Dubai, LEED Platinum • Abu Dhabi: Rosewood Abu Dhabi, LEED Certified The United Arab Emirates has a broad base of support for LEED across the country, with more than 80 USGBC member organisations spread across the country’s architecture, construction, manufacturing, real estate and retail industries. The UAE also boasts the worlds fourth largest professional LEED workforce behind only the United States, Canada and China; a statistic that shows that the country is bracing for much greater LEED green building demand in the coming years. l
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Top priorities for consumer executives in the UAE KPMG’s third annual ‘Top of Mind’ consumer survey, in conjunction with the Consumer Goods Forum (CGF), has found that growth and top-line expansion, consumer trust and a sound omni-channel strategy are the top priorities for consumer company executives - both globally and in the UAE
PMG and CGF surveyed close to 550 senior consumer, manufacturing and retail executives globally to gain insight into the economy, the impact of competition, and critical disrupters for the consumer industry. For the first time, respondents to the survey included key decision makers from consumer businesses based in the UAE. 47 percent of UAE consumer companies reported that income had increased by more than 10 percent in 2014 – far outstripping the global trend where only 15 percent had seen similar growth. Perhaps recognising this, all of the UAE respondents said that expansion and top line growth are going to be critically or very important to success over the next 1-2 years, compared to a global response of just threequarters. Anurag Bajpai, a partner with KPMG Lower Gulf and the leader of its retail practice said, “While growth and expansion have traditionally been top three issues for senior management, executives globally and in the UAE have identified this as their top focus for 2015. The focus on omni-channel echoes the exceptionally strong annual growth in
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e-commerce globally, as well as the increased role of the Internet throughout the customer's path to purchase and the supply chain. However, delivering on omni-channel potential is widely recognised as a challenge. At the same time, 70 percent of UAE respondents feel that protecting customer and company data is going to be important to company success over the next 24 months.” Willy Kruh, the global chairman of KPMG’s consumer markets practice said, “With topline expansion and growth being this year’s top priority as well as the top challenge, the survey data clearly shows that a new battleground is emerging—how to understand and win over customers. “There are some hard choices to be made to build or maintain a competitive advantage. Companies must be aware of, and proactively address potential disruptors. The optimal time to do this is usually long before you think it’s the optimal time.” Having established that top line growth is a key goal for almost everyone, the survey identifies six specific levers that are likely to exert the most influence on a company’s ability
to grow revenue. These are grouped as drivers (consumer trust and omni-channel), enablers (consumer knowledge and supply chain), and derailers (data security and sustainability and corporate social responsibility). l Fast Facts on the Research • The survey was conducted during the first quarter of 2015 • 539 senior executives from large consumer goods companies around the world were surveyed for the study • Companies surveyed are from the consumer manufacturing and retail sector, with at least $250 million in revenues • Three quarters of the respondents are C-suite or above, with influence or insight into their company’s global strategy • 47% of UAE consumer companies surveyed report that income growth increased by over 10% in 2014 • 70% of UAE respondents feel cyber risk is a growing concern • Online purchasing continues to grow
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Customer Service Challenges
The UAE’s highly diverse population leaves organisations facing unique customer service challenges but its buoyant aviation sector has proved they can be addressed, according to the President of The International Customer Service Institute peaking prior to chairing the judging panel in this year’s ‘GCC Service Olympian Awards,’ Philip Forrest, the President of The International Customer Service Institute (TICSI) who is responsible for The International Standard of Service Excellence, the world’s only truly global customer service benchmark, says the customer experience in the GCC should always respect and support the region’s cultural diversity. Forrest, who also chairs the European Business Awards’ judging panel, said in the UAE, customer experience management also needs to reflect and support the country’s wider aspirations. “The UAE is a major trade and international tourist destination with its airports not only the busiest in the world but also carrying over 10 million passengers - a number that exceeds the population of the UAE of all nationalities and is around 20 percent of the total GCC population. In the public sector too many organisations are already at the leading edge in their sectors. So the challenge for Customer Experience Management in the UAE is how to deal respectfully, successfully and professionally with a widely diverse range of expectations,” explained Forrest, who is a founder Fellow of the Chartered Institute of Marketing. Forrest said the way ahead for UAE customer service practitioners is to set its targets high and try to treat every customer as an individual and deliver the service in a way that they need. “In the UAE organisations should aim to be, not just the best in the region but the best in the world - someone has to be
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“Being the global best means that the margin for customer disappointment is greatly reduced” Philip forrest, president, ticsi
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- and as its airlines have proven, there is no reason why it cannot be many organisations across the UAE. Being the global best means that the margin for customer disappointment is greatly reduced,” explained the author of ‘Sold On Service’ the first European book on service quality management. And Forrest says that organisations with employees who have engaged with customers have greater loyalty to their products and services. “It is an organisation’s employees who influence the behaviour and attitudes of
customers, and it is customers who drive a company’s profitability through the purchase and use of its products and services. In the end, customers who are more satisfied with a firm’s products are less expensive to serve, use the product more, and are more profitable or cost effective customers,” he explained. Forrest will be in the UAE later this year in his judging chair role for the prestigious Service Olympian Awards, the only independent honours which recognise GCC customer service leaders. l
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Career Coaching Managing your career is a lot different today than it once was. Gone are the days when you strived to get a job in one company where you would attempt to climb the career ladder and in return the company tried to offer you a relatively good benefits package and a ‘ job for life’ anaging your career is a lot different today than it once was. Gone are the days when you strived to get a job in one company where you would attempt to climb the career ladder and in return the company tried to offer you a relatively good benefits package and a ‘ job for life’. Today’s career paths are much more diverse and much less linear. It is not unusual today to have a career where you move companies frequently to pursue interesting work opportunities and develop yourself professionally or to gain varied industry and global experience as a means to climb the career ladder. Companies are now in return having to offer more to retain employees such as, competitive salary packages, clear internal career paths, opportunities for training and develop and additional flexible benefits to meet the growing demand from today’s workforce for improved ‘worklife balance’. What happens though if you find your opportunities drying up and begin to feel like you have reached a plateau and are stuck in a career rut? Or believe you are not progressing in your current role, and find yourself disengaged from your company because they don’t and can’t provide you with the career or development opportunities that you seek? What should you do if you find yourself thinking you want another challenge, a more competitive salary or even a new career altogether? What can you do if you want a better work life balance but are unsure of how to reprioritise what really matters to you? Working with a career coach could help. Career coaches specialise in working with individuals to navigate the job market and help them to identify their next career move. A good career coach will have experience and knowledge of job trends and the current labour market. If you are specifically looking for a career change, they can assist you to identify what jobs are projected to grow, what fields offer more security, where the international opportunities are and what jobs are in demand and the skills that are required for them. They will work with you to identify where you are currently on your career path and to get a vision of where you want to
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be in the short, medium and long term. They will then support you in building a roadmap to get there. However, a lot of the initial work with a career coach focuses on creating self awareness and personal insight; the coach will help you discover your strengths, motivations, ambitions your values and what energises and fulfils you. They will also work with you to uncover your blind spots, where you might be holding yourself back, what limiting beliefs you may have and help you overcome these. A career coach can also help you identify your current career stage differential. Your
Where Are You On Your Career Path? Career Starter
Career Developer
Career Establisher
1-3 years
3-10 years
10 years plus
What kind of company do you want to work for?
What opportunities are available for you to develop your expertise and skillset?
How can you reinforce your personal brand and profile as ‘the expert’?
What kind of role do you want?
Are their opportunities to advance to more senior positions?
Are their opportunities for you to develop and hone your leadership style?
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Bio
Ceri McVittie
Personal Coach and Leadership Development Consultant www.yourabsolutelife.com 052 884 6306 Ceri has an honours degree in Psychology and had a successful corporate career as a Human Resources professional for 14 years. Having worked on the Executive Boards in FTSE 100 and FTSE 250 companies Ceri has many years experience of working at a Senior Leadership level herself and also developing and coaching other senior leaders and high- potential managers to meet business challenges. Trained by the Coaches Training Institute (CTI) Ceri is a Certified Professional Co Active Coach (CPCC) and a certified Executive Coach. Ceri is an Associate Certified Coach (ACC) accredited by the International Coaching Federation (ICF). Ceri now works as a full time freelance Personal Coach and Leadership Development Consultant. Using a range of skills including Consultancy, Coaching, Training, Mentoring and Facilitation she works with clients to deal with today’s career and leadership challenges, while encouraging individuals to uncover their authentic self.
career differential is what matters to you with regards your career and the stage of life you are in. This changes over time e.g. is financial freedom your differential or is pursing an international career, or is having more time to spend with your family? A career coach can help you uncover this and support you to develop targeted strategies and action plans to purse what matters to you. One specific area of focus an experienced coach can assist you with is building your personal brand. An online presence is key to this and it helps you stand out. This is particularly important in today’s job market where social media is becoming more and more important, not only as a recruitment tool
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but as a networking medium. A career coach will work with you to explore options for building your brand and define what other networking opportunities are possible. If you find yourself holding back or have a lack confidence in networking, a career coach can work with you to overcome your fears and to develop your confidence. Working with a coach will help you gain perspective and enable you to see the wood from the trees if you find yourself ‘stuck in a career rut’. The work you do together will empower you to take control, find direction and set you in motion. One of the main reasons coaches help you take action is that the coaching relationship offers accountability, just being accountable to someone other than yourself can often give you the push you need to take responsibility and propel yourself forward. Self Help Career Tips Assess where you are now: Define where you are currently in your career - are you a starter, developer or establisher? Visualise what you want to achieve in your career in the long term. What is the ultimate role for you? Make a list of what you could do now at the stage you are in that will help contribute to your longer term career goal. Be clear on what you want: If you are looking to change companies, make a list of what you want from your next role and the type of company you want to work for. Your job search can then be targeted to companies that are aligned to your requirements. It is likely you will feel more satisfied and engaged working for a company that meets your expectations and has values, a brand and culture that you believe in. Develop your skills: It is not just the role of the company to develop you. In today’s job market working on your own personal growth and continuous personal development is expected. Look at what skills are in demand for the roles you want to pursue and work on developing these. While technical skills are important companies today are placing greater importance in transferable skills. Good communication, problem solving and computer skills are some of the most sought after transferable skills in today’s job market. Define Your Personal Brand Be clear on who you are, what you want and who you want to become so that you can articulate this. Ensure that your behaviour is also aligned to who you want to be, as what you project will be how other people perceive you. Ensure you are always authentic in your interactions with others. l
What should you do if you find yourself thinking you want another challenge, a more competitive salary or even a new career altogether? The coach will help you discover your strengths, motivations, ambitions your values and what energises and fulfils you. They will also work with you to uncover your blind spots, where you might be holding yourself back, what limiting beliefs you may have and help you overcome these
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Drastic Property Market Correction Unlikely Says London Business School
A large majority of business executives believe a drastic property market correction in Dubai is unlikely, according to a marketplace intelligence survey by London Business School he survey, conducted with more than 200 business executives to analyse Dubai’s booming residential property market and the possibility of another real estate ‘bubble’, revealed that 84 percent of respondents don’t believe Dubai property prices will plunge in the same way they did in the 2008-9 market correction. Joao Cocco, Professor of Finance, London Business School, says, “The vast majority of executives surveyed do not believe that there will be a drastic decline in residential real estate prices in Dubai over the next 12 months. Only 3 percent of those surveyed expect an annual decline larger than 20 percent.”
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The Findings Despite speculation from real estate analysts across the UAE and the wider region about soaring property prices and the risk of another speculative property bubble, almost half (47 percent) of respondents would invest in the Dubai property market. More than a third cited a strong economic outlook for Dubai as their main reason for investing. Other reasons included high rental yields for Dubai properties and personal reasons, including the high quality of life in the UAE and preferring to purchase instead of renting. More than a third (44 percent) of the respondents, who included alumni, current Executive MBAs and past participants of the School’s Executive Education programmes, said greater restrictions on
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“Respondents’ views of the evolution of residential and commercial property price movements over the next year were fairly similar” said Professor Cocco real estate supply would most effectively limit market speculation and prevent a future real estate bubble. Tighter eligibility for home finance loans would also help said 18 percent of those surveyed. “Roughly half of the executives surveyed recognise the risk that the supply of new properties will increase at a faster rate than the demand, leading to a situation of over-supply and a decline in real estate prices, and favour greater restrictions on construction as a way to mitigate this risk,” said Professor Cocco. Business executives were divided on the question of whether property prices would move upward or downward, with just over 50 percent
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saying they will decrease, and 49.75 percent saying prices will remain stable or increase. More than two thirds (68 percent) of respondents predicted that Dubai’s residential market would not continue to grow at the same rate as it has thus far. Just over half (51.5 percent) of the respondents thought that any losses or gains in the Dubai property market will be within 10 percent of their current value, with 31 percent stating the market will decrease by less than 10 percent and 20.5 percent predicting an increase of less than 10 percent. Professor Cocco added, “It is reassuring to see that more than two thirds of respondents do not believe that property prices will keep on increasing at the same rate in the future. Unrealistically high expectations of future house price growth have in the past been a source of booms in the housing market, only to turn into bust when expectations change.” Respondents also felt the commercial property market would remain relatively stable, with almost 64 percent of respondents saying any increases or decreases in prices would be less than 10 percent.
“Respondents’ views of the evolution of residential and commercial property price movements over the next year were fairly similar,” said Professor Cocco. Knight Frank’s Global House Prices Index A recent report by Knight Frank’s Global House Prices Index has shown that Dubai was one of the worst performing housing markets in the first quarter of 2015. According to the new research, Dubai ranked 53rd out of the 56 locations monitored - one place lower than Greece, but higher than China, Cyprus and Ukraine. The report revealed property prices in Dubai fell by 6.1 percent over a 12-month period, and were 3.7 percent lower than the previous quarter. Dubai suffered a correction in 2008 when property prices dropped by more than 50 percent. But according to the business executives surveyed by London Business School, a drastic market correction this time around is unlikely. l
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Sense of Smell
Increasingly marketers to help them in the quest for invoking feelings and brand loyalty are calling on our senses. Smell is one such sense that is being used. It can take you back to a memory from years ago, and conjure up both great and bad feelings, so why should this not be used to a company advantage? “Smell gives life taste, and triggers emotion. It fires curiosity and makes you feel alive” Marie Amandine, Perfumer
Why is smell so important? Amandine: Scent is my passion. Smell gives life taste, and triggers emotion. It fires curiosity and makes you feel alive. Alberto: The sense of smell is a source of life.
hat said; is it worth investing in a smell for your brand? The answer is a resounding yes! You need only think of the Address Hotels to think of how important a signature smell can be. In our article, we speak to the ‘noses’ of Ferragmo’s new perfume Emozione, Alberto Morillas and Marie Amandine about the importance of smell and how it can help brands.
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So tell us about your career trajectory… It is a highly skilled and incredibly unusual career choice! How did you start off developing your sense of smell and how did you get into the perfume industry? Amandine: I caught the perfume passion bug very early on. My mother worked as perfumer and I have fond memories of
moments spent smelling the raw materials in the lab. The atmosphere has always felt very familiar. I graduated from ISIPCA, the international perfumery school in Versailles, and started my career in 2001. Alberto: I was born and grew up in Seville, surrounded by the smells of Spain and the little garden where I spent time when I was very young. Later we moved to Switzerland and I went to the Fine Arts school there, as it was clear to me that I wanted to have an artistic profession. When I was 20, I joined Firmenich and I was immediately won over by the mixture of all the smells in the lab. Becoming a perfumer quickly became obvious to me, and an absolute passion. I learned everything in this company, where I am given total freedom.
“We create emotions that have a meaning. It’s the art of bringing raw materials together to create emotions” Alberto Morillas, Perfumer
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What steps did you take to put together the final fragrance for Emozione? Amandine: We worked on a fragrance, which covers various aspects of white: shining white, elegant white, luminous white, refined white to bring an unheardof elegance to the skin. Alberto: This fragrance is a truly feminine emotion, a creation that sublimates woman. What can a marketer successfully achieve with a smell? Alberto: Above all, we create emotions that have a meaning. It’s the art of bringing raw materials together to create emotions. This is what marketers strive for. What is the one piece of advice that you would give a business that wanted to create their signature scent? Amandine: Dare to be different, while staying yourself. Alberto: To write a perfume with your emotion.
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THE PHILLIPS GROUP SPECIALIZING IN LEADERSHIP SOLUTIONS The Phillips Group is a boutique executive search firm specializing in placements in the MENA Region. From assisting Fortune 500 companies acquire and retain top performing senior executives or to advising leading Chief Executive Officers on developing their human capital, The Phillips Group has experience acquiring leadership talent from all four corners of the world. WE ARE THE EXECUTIVE SEARCH SPECIALISTS. Call us now for high touch bespoke service if you are looking to hire the best in your industry.
M: +971 50 940 7537 T: + 971 4 352 2849 shane@tpgleadership.com www.tpgleadership.com
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